Mozambique: Future hydroelectric power plant may raise almost US$14B – government

The figures are contained in a press release from Mozambique’s Information Office (Gabinfo), according to which the project implementation timetable envisages completion of the development phase by 2028, the start of construction in 2029 and the commencement of commercial operations from 2034. «During the construction phase, the project is expected to generate between 6,000 and 7,000 direct jobs, whilst projected public revenue is estimated at around $13.98 billion, derived from taxes, fees and dividends over the project’s lifetime,» the statement notes. According to the Government, the project continues to attract strong interest from international financial institutions and strategic partners, paving the way for financial closure and the start of the construction phase, despite changes to the composition of the private consortium, which, it assures, do not compromise the development of the project or the planned timetable.

Among the key milestones achieved since the project’s conception is the completion of the feasibility study for the Tete-Maputo power transmission line, considered strategic for supplying the main consumption centres, strengthening national energy security and increasing the capacity to export electricity to the region, the statement adds. The Mphanda Nkuwa project is part of Mozambique’s strategy to expand electricity generation, providing for the construction of a hydroelectric power station 61 kilometres downstream from the Cahora Bassa Hydroelectric Power Station. According to updated government figures, the project represents an estimated investment of between $6 billion and $7 billion and comprises a power station with an installed capacity of 1,500 megawatts (MW), as well as a high-voltage power transmission line stretching approximately 1,300 kilometres between Tete, in the centre of the country, and Maputo, in the south.

On 8 July 2025, the government authorised the state-owned companies Eletricidade de Moçambique (EDM) and Hidroelétrica de Cahora Bassa (HCB) to acquire up to 15% each of the share capital of the future power station, at a time when the overall project was valued at around €4.5 billion. The shareholder structure also includes a consortium led by the French company EDF, which signed agreements with the Mozambican government in December 2023 for the implementation of the project. In addition to EDF, the consortium includes the French company TotalEnergies and the Japanese firm Sumitomo Corporation, which jointly held 70% of the hydroelectric plant.

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In December 2025, the United Kingdom announced the provision of around €424,000 to bolster technical assistance for the project’s development. Earlier, in October 2025, the government approved the decree awarding the concession for the hydroelectric project to the consortium responsible for the design, construction and operation of the future power station.

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